Commerce secretary Sunil Barthwal Friday said India and Peru have decided to resume negotiations for a proposed free trade agreement (FTA). 'We have decided to proceed with the FTA negotiations. We would be working out the priority areas... Post September, we will start engaging,' he said on the sidelines of India-Latin America and the Caribbean (LAC) conclave organised by Confederation of Indian Industry.

 

'If the countries are interested in FTAs, we will also look into possibilities,' he said, adding that Chile is also requesting for a similar agreement. The trade pact talks would be resumed after the Covid-19 pandemic. Few rounds of talks were held before the pandemic.

 

India-Peru bilateral trade was $3.11 billion in FY23.

 

Stating that imports from India constitute less than 2% of LAC's total imports, Barthwal said that there is significant scope for expansion of India-LAC bilateral trade and that efforts are on to double the bilateral trade to $100 billion in the coming years. -Our Bureau

India's rice stocks were at nearly three times its target at the start of August, two government sources in the world's second biggest producer country said on Thursday.

 

Coupled with the new season crop that is due to start trickling into the market by October, the surplus will raise market hopes of New Delhi relaxing a recent export ban.

 

The world's biggest rice exporter last month ordered a surprise halt to non-basmati white rice exports, its largest category, driving prices to multi-year highs.

 

Indian rice stocks, including unmilled husk varieties at state warehouses, totalled 37.6 million metric tons on Aug 1, the sources told Reuters.

 

'We are quite comfortable in rice,' said one of the sources, who asked not to be identified.

 

'We are in the tail end of the 2022-23 rice marketing year, and as you can see, our stocks are more than adequate. And then the next crop the round the corner.'

 

Stocks held as of Aug 1 include 24.6 million metric tons of rice and 13 million metric tons of the unmilled variety, the sources said.

 

State-run warehouses must have 13.5 million metric tons of rice, including strategic reserves of 2 million metric tons for the quarter beginning July 1, according to local government rules.

 

Indian farmers, who typically start planting rice in the rainy months of June and July, will start harvesting the new season crop from October.

 

New season purchases by India's state-run Food Corporation of India (FC), the main state-run grain buyer, would bump up rice inventories at state granaries.

 

FCI bought 84.6 million metric tons of rice paddy from domestic farmers during the 2022-23 marketing year, yielding around 57 million metric tons of rice.

 

Indian farmers harvested a record 135.5 million metric tons of rice in 2022-23, according to the Ministry of Agriculture & Farmers Welfare.

 

Indian farmers have planted 23.7 million hectares with summer-sown rice so far, according to the farm ministry's latest data, up 1.71% year-on-year, as crucial monsoon rains revived in July and helped farmers accelerate sowing.

 

India is likely to receive below-average rainfall in August due to the El Nino weather pattern, after an above-average monsoon in July helped farmers accelerate crop planting.

 

Still, rice-growing states in eastern India could receive surplus rainfall in August, according to the weather office.

 

A good crop would force FCI to buy large quantities of rice from farmers, further boosting stocks at government granaries, B.V. Krishna Rao, president of the Rice Exporters Association, told Reuters.

 

The export ban would increase domestic supplies and bring down rice paddy prices to the government-set support or guaranteed price of Rs 2,183 per 100 kg, compelling FCI to buy more, he said.

 

'The government is already holding more rice than required under buffer norms,' Rao said referring to the state-set target.

Asserting that UP can play a big role in export of millets from the country, chief minister Yogi Adityanath has issued directions to authorities concerned to step up the millets revival programme across the state.

 

'The state government is funding the Uttar Pradesh Millets Revival Programe that includes a detailed action plan to spread awareness about millets (Sri Anna) among the public. It not only aims to promote millet-based recipes but also seeks to raise awareness about their nutritional value,' a government spokesperson said on Tuesday. He said the government intends to take a step further by conducting consumer awareness programmes in all districts and incorporating millets in school curriculum.

'To ensure effective implementation, the government is planning to provide training to teachers across the state to familiarise them with the significance of millets. By doing so, they hope to create a widespread positive impact on millet consumption and nutritional awareness among the people,' the state government said in a statement.

'As many as 200 teachers will be given special training across the state. Through these, other teachers of the state will also be linked to the millets awareness programme and will be trained to use Sri Anna, dispel the myths related to it and spread awareness. Different types of competitions on millets will be organised,' he said.

After a two-year effort, the Goan mancurad mango has got its prized geographical indication (GI) tag, giving it a unique status. The king of fruits was on the GI registration list for 90 days, which came to an end on August 1 and received no objections, allowing the mango to achieve the status. The popular Goan dessert bebinca has also got the tag.

 

'This bodes well for Goa,' said Deepak Parab, nodal officer, patent facilitation centre at the state council for science and technology. Agapito Menezes, president of the all-Goa bakers confectioners association, said that the GI tag for bebinca will ensure quality controls over the dessert. 'We have already lost the authentic flavour in Goan bread due to commercialisation,' he said. 'Over time, there have been non-Goans baking bebinca without following the original recipe and monetising it by selling it in Goa. The GI was therefore necessary to retain the authenticity of the Goan bebinca.'

Parab said, 'Many people export bebinca, and with the GI tag, the all-Goa bakers confectioners association can demand a premium price for this unique Goan product'.

As for the mancurad, it has a spongy tissue making the texture of its flesh and taste different from other mango variants, owing to which it is touted as one of the best mangoes available.

‘Farmers will be able to quote higher price for mangoes, boost cultivation’

The all-Goa mancurad mango growers association can discuss with the state government what benefits they can derive by virtue of the GI tag,' he said.

It was retired senior scientist at the Goa-based ICARCCARI, A R Desai, who had ensured that all the important information pertaining to the application was well documented to be presented to the GI committee for consideration.

 

'I am elated that Desai’s efforts have borne fruit. This is a matter of great pride for ICAR-CCARI. Farmers will be able to quote a higher price for their produce and we presume that the area under its cultivation will also increa se,' said director, ICAR-CCARI, Parvin Kumar.

Secretary of the all-Goa mancurad mango growers’ association Nestor Rangel, who defended the GI application for mancurad mango before the GI committee earlier this year, said that the fate of the mango variant will drastically improve following its newfound status.

'Mancurads are being grown in Vengurla, Maharashtra, and Belagavi, Karnataka, by the neighbouring state’s farmers after sourcing grafts from Goa. With the Goan mancuard getting GI status, the local farmers’ rights to sell this variant will be protected. We have to now think of marketing this mango variety abroad,' he said.

In addition, the Agacaim brinjal and seven-ridge okra also received the prized GI status. The Goa cashew is expected to receive this status by October this year.

TOIhad reported in April that Goa is in the final stage in the process of obtaining a GI status for these items.

Efforts are also being made to acquire the status for the Goan sausage, mussarat mango, Kunbi saree and handicrafts such as coconut carving and shell items.

A delay in imports of tur dal from Mozambique amid reports of cartelisation by some exporters there has prompted Indian authorities to 'emphatically' clarify that there are no quantitative restrictions on tur imports from the African country.

 

The Indian high commission in Maputo has issued a press release to inform all exporters of tur/arhar dal in Mozambique that they can export it to India under 'free category' without any upper limit on quantities and without import duty till March 31, 2024.

 

The clarification this week comes even as a cartel of exporters in Mozambique is allegedly pressurising their government to introduce a quota system for tur exports to India so as to monopolise the trade and manipulate prices.

 

This has caused shipping delays and a rise in prices of imported pigeon peas. The price of imported whole tur of Mozambique origin in Mumbai stood at Rs.88,000 per quintal on Wednesday against Rs.87,000 on Tuesday.

 

'The Mozambique government wants its exports to go through Institute Cereal Mozambique (ICM), as per the MoU of India with Mozambique, and some cartel wants to earn through ICM,' a pulses importer said on condition of anonymity.

 

India had signed a bilateral memorandum of understanding (MoU) with Mozambique to import 200,000 tonnes of tur every year from Mozambique.

 

'A few suppliers from Mozambique are trying that the Mozambique government gives a quota of tur export to only a few exporters,' a second pulses importer from Mumbai said. 'There is a lot of ambiguity right now about what happens to the trade that has already been done.'

 

India was looking to replenish its tur dal stocks with supplies from Africa, particularly Mozambique, starting August amid a shortage in the domestic market, which is expected to aggravate due to lower sowing in the ongoing kharif season, and rising prices.

 

Retail prices of tur have increased by 2.5% in last one month and by 27.5% in last one year, according to data from the Ministry of Consumer Affairs.

 

The central government had earlier removed the import duty and the requirement of certificate of origin for imports of tur from Mozambique.

The age-old mechanism of placing exporters who fail to bring in foreign exchange in time on the 'caution list' may be examined.

 

An internal working group of the Reserve Bank of India (RBI) has recommended rationalisation of the caution-listing process, two persons told ET.

 

The going gets tougher for exporters who find themselves on such a list as local banks, processing the trade documents, typically insisting on either arranging advance payment from overseas buyers or an irrevocable letter of credit from the latter's bank.

 

If the RBI accepts the recommendations, industry circles are hoping that there may be a carve-out for cases up to a certain threshold level of exports, or where exporters are faced with genuine hurdles in obtaining payment - for instance, an overseas buyer facing liquidation or bankruptcy.

 

'A shipping bill may remain open on account of a variety of genuine reasons. For instance, there may be short remittances due to the deduction of bank charges or post-shipment discounts offered by the exporter, or reconciliation errors in exports made under long-term contracts. Besides, there could be automatic deductions by foreign online marketplaces towards warehousing charges, service fees, commissions, ad fees, etc. After recommendation by the authorised dealer bank for caution-listing, RBI should grant an opportunity of hearing to the exporter before inclusion in the caution-list,' said Harshal Bhuta, Partner, PR Bhuta & Co, a CA firm.

 

For such mismatches, exporters end up receiving notices from the Enforcement Directorate. A rationalisation of caution-listing would exclude some of these cases and save exporters from dealing with the ED.

 

Last year, there were cases where the Directorate had asked companies to submit a string of information on businesses and key persons as well as old data - including local and offshore bank accounts, identities of directors, and former directors as well as their nature of association with the company along with residential addresses.

 

Exporters have to realise earnings within nine months from the date of export. After this, they may get extensions from the bank for up to three years with each extension not exceeding six months.

 

An exporter is caution-listed by RBI based on the recommendations of the bank which looks into the exporter's track record and possible run-ins with investigative agencies. The system of automatic caution listing based on the information in the export data processing and monitoring system (EDPMS) was discontinued by RBI in October 2020 to give relief to exporters hit by the pandemic. Earlier exporters were automatically caution-listed if any shipping bill against them remained outstanding for more than two years in the EDPMS platform and no extension was granted.

 

'The ED has been verifying many pending cases of parties which have received (or remitted) part of the money for export (or import) of goods but did not complete the actual shipments. These exporters and importers follow up with the respective authorised dealer to knock off the bill of lading with advance funds received and bill entry with advance money remitted. Many times a single transaction is outstanding on both sides. The department checks whether all documents have been properly submitted,' said Rajesh Shah, partner, Jatyantilal Thakkar and Company.

 

ED springs into action as pending receivables or payables create a suspicion of possible money laundering. Some of the companies, which received the recent notices, face the hardship of compiling details of all exports and imports since their inception: date of remittance (from the overseas buyer), name of the remitter (or the identity of the overseas buyer), currency of payment, amount in foreign currency, the equivalent in rupees, date of export, shipping bill number, whether export-related documents were submitted to the bank, and the balance amount in case of partial shipment of export.

The Ministry of Food Processing Industries (MoFPI) has approved four food processing units in the state launched since 2017-18 till date, under the scheme for the creation/expansion of food processing and preservation capacities (CEFPPC).

 

In reply to a question from BJP MP Aparajita Sarangi, Minister for Food Processing Industries Pashupati Kumar Paras informed Lok Sabha that the project sanctioned under Pradhan Mantri Kisan Sampada Yojana (PMKSY) where a fish and marine processing unit of B-one Business House Pvt Ltd with an In project cost of Rs 22.31 crore was approved in February 2018 and grant-in-aid of Rs 5 crore, has been released.

 

The unit set up in Khurda district has a capacity to process 6,000 tonnes per annum and has created employment for 300 people. Around 25 farmers are availing direct benefits from the unit. A milk processing unit of Pragati Milk Products Pvt Ltd was sanctioned in January 2019 and a grant-in-aid of Rs 5 crore has been released. Set up at a cost of Rs 20.52 crore in Cuttack district, the unit has the capacity to process 60,000-tonne milk per annum. The unit has provided employment to 538 people and supports 150 dairy farmer families.

 

The Ministry approved two projects - a food and vegetable processing unit in Rayagada and a marine fish processing unit in Khurda in December 2022.TABA Snacks and Beverages Pvt Ltd has proposed to set up a fruit and vegetable processing unit at a cost of Rs 14.39 crore with employment opportunities for 325 people. It will have an annual processing capacity of 38,000 tonnes and support 250 farmers.

 

Similarly, Flamingo Shrimpex (P) Ltd proposed to set up its fish processing unit in the Khurda district at an estimated cost of Rs 35.96 crore with an annual processing capacity of 11,000 tonnes. Around 200 fish farmers will be benefitted and 257 people will get employment. However, the Ministry is yet to release the grant-in-aid component to the two units, Paras said.

 

Under the Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) scheme, Rs 58.22 crore has been released to Odisha and 838 loans sanctioned for micro food processing enterprises, he added.

As the current G20 Presidency, India has prioritised food security by promoting sustainable agricultural practices, reducing reliance on imports, and enhancing resilience to climate change. To drive this progress forward, The Global FoodBanking Network (GFN) and Thinkthrough Consulting (TTC) is hosting the Global Food Security Summit 2023 under the aegis of  G20 to foster cross-sectoral conversations around building a sustainable ecosystem, paving the way to ensuring ‘Food For All’.  

 

The two day Summit will be held at Dr Ambedkar International Centre, New Delhi on August 8 and 9, 2023, to initiate a conversation on the challenges of food security and the need to design resilient food systems to tackle the issue unfolding worldwide.

 

High Commissioners, Ambassadors, and Senior Officials of the G20 member countries and 9 guest countries invited by India, including Bangladesh, Egypt, Mauritius, The Netherlands, Nigeria, Oman, Singapore, Spain, and UAE, will collectively participate to spread awareness and express their viewpoints Multilateral and Bilateral Organizations - World Bank, Asian Development Bank, United Nations Development Programme (UNDP), and Industry Thought Leaders like Invest India, the Federation of Indian Chambers of Commerce and Industry (FICCI), the Confederation of Indian Industry (CII), and the Indian Council for Agricultural Research (ICAR), among others, will have representation in the discussions at the Global Food Security Summit.

 

Lisa Moon, president and CEO of The Global FoodBanking Network, said, 'As people around the world face growing hunger and food insecurity, we need to accelerate relief efforts and longer systemic shifts for people in crisis. Food banks provide multiple benefits like improving access to nutritious meals, strengthening communities, and reducing food waste and the emissions that cause climate change. GFN member food banks provided support to 32 million people worldwide in 2022. This is nearly double the number of people served by member food banks before the Covid-19 pandemic, signaling a sustained increase in demand for food assistance since 2020. In 2022, more than two-thirds of the food distributed was locally sourced. We are witnessing the food banking model gaining traction to improve food security and hope leaders will include this as part of the solution set in the G20 conversations.'

 

The summit will facilitate collaboration and partnership amongst food banks and key stakeholders. It will also raise awareness about reducing food loss and promoting community resilience.

 

Parul Soni, global managing partner, Thinkthrough Consulting, said, “Food loss and malnutrition is a global challenge that requires collective efforts from all the stakeholders. Today, about one-third of all the food produced worldwide is wasted when about 10% of the entire population goes to bed empty stomach. Even if they have access to food, it is either not edible or nutritious enough for their healthy physical and mental development. Through this summit, we aim to encourage food security and promote the concept of food banking that can provide food to the needy and minimise the food inequality gaps.'

 

Nutritional deprivation and food wastage continue to be crucial issues that plague the world and require immediate attention. Based on the Food Waste Index Report 2021 by the United Nations Environment Programme (UNEP), approximately 1 billion metric tonnes of food are wasted annually worldwide, while over 700 million people continue to remain undernourished. There could be many reasons for this such as seasonal supply exceeding demand, lack of storage facilities, unequal distribution of food, poor harvest losses and consumer behaviour.  

 

Moreover, the global food crisis has been further aggravated by conflicts, climate change, and the Covid-19 pandemic. This has led to a rapid rise in the cost of food and fertilisers, putting enormous pressure on vulnerable and low-income communities. This dire situation demands urgent action, which begins with raising awareness and engaging in open dialogue with all stakeholders.

 

Prioritising food security is one of the main agendas of the country, therefore, it is imperative to comprehend the significance of food banking which is a pivotal step towards ensuring food security Furthermore, food safety is also a crucial objective of the UN’s Sustainable Development Goals.